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MNI: EU Finance Ministers Agree To Hike EIB Gearing Ratio

European Union finance ministers have agreed to hike the European Investment Bank’s gearing ratio to 290% of its capital from 250%, in a move which officials said was needed to keep borrowing levels at their current level due to risk management controls.

The change will require a change to the EU Treaties and unanimous support of member states, and legislation could be in place though within six months. The amendments to the treaty, which in some cases require ratification by national parliaments, will allow more flexible changes in the EIB gearing ratio in the future, one official said.

 

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European Union finance ministers have agreed to hike the European Investment Bank’s gearing ratio to 290% of its capital from 250%, in a move which officials said was needed to keep borrowing levels at their current level due to risk management controls.

The change will require a change to the EU Treaties and unanimous support of member states, and legislation could be in place though within six months. The amendments to the treaty, which in some cases require ratification by national parliaments, will allow more flexible changes in the EIB gearing ratio in the future, one official said.